Putin warns of economic strife should inflation rise uncontrollably

Russian President Vladimir Putin on Tuesday revealed about raising inflation had made the central bank to rise prices to 12% previous month, saying that Russia’s economy could be caught in danger in no time if price getting high were permitted and the situation must be controlled at the earliest. “In situations of rising inflation, it’s not possible to create business goals,” Putin said at the Eastern Economic Forum in Vladivostok.

Putin revealed he understands zero issues with rouble volatility, and the authorities had a cache of tools to keep the currency and markets within their control. The rouble hit its strongest level in approximate six weeks in opposition to the dollar in early trade on Tuesday, buoyed by gradually raising foreign currency sales by exporters and prospects that the central bank may raise prices again this week. Putin said the rouble rate was impacted, along with other things, by the “hindered” return of foreign currency earnings by exporters, but he said that no immediate steps would be taken, talking about the capital controls and other steps to hinder volatility.

He said the government found zero requirement to increase taxes currently. It has enforced a windfall profit tax on some companies this year to raise budget revenues. The Kremlin publicly called for tighter monetary policy previous month as the rouble tumbled past 100 to the dollar, resulting in the central bank to increase prices by 350 basis points to 12% on Aug. 15 in an emergency meeting. Several analysts anticipate other rise this Friday, but some top bankers have conveyed a halt is more tentative to happen, specifically as the rouble has polished this week.